Voyager receives court approval of stipulation with FTX, committees

By Sarah Lizee

Olympia, Wash., April 6 – Voyager Digital, LLC secured court approval of a stipulation with FTX Trading Ltd. and each of their respective official committees of unsecured creditors, according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, given the various disputes between the parties, they engaged in arm’s length discussions to resolve or at least narrow their issues.

One of these issues has to do with FTX debtor Alameda Research Ltd.’s adversary proceeding against Voyager seeking to claw back $445.8 million in preferential transfers. The suit was filed in late January.

Between 2021 and 2022, Voyager lent hundreds of millions worth of cryptocurrency to Alameda. When Voyager filed its own bankruptcy cases in July 2022, it demanded repayment of all outstanding loans to Alameda, including prior to stated maturity dates. Alameda said Voyager was repaid in full.

The adversary proceeding seeks to recover those funds as preferential transfers for the benefit of Alameda’s creditors.

The stipulation will resolve some disputes between the parties with respect to Voyager’s plan of reorganization and FTX’s prepetition proofs of claim filed against Voyager.

It will also require Voyager Digital LLC (Voyager OpCo) to establish a cash reserve in the amount of $445 million on account of the preference claims so that if FTX prevails in the litigation, there is value available to satisfy FTX’s claims.

And, it will establish a framework for the litigation of the preference claims.

Voyager Digital is a cryptocurrency broker based in New York. The company filed bankruptcy on July 5, 2022 under Chapter 11 case number 22-10945.

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